MSEDCL Seeks 500 MW Solar For Meeting RPO Obligations

Maharashtra discom MSEDCL (Maharashtra State Electricity Distribution Company Limited) has issued an RFS (request for selection) to procure solar power up to capacity of 500 MW from Grid connected Solar Projects through Competitive Bidding Process (conducted through electronically facilitated online web based portal of M/s ISN Electronic Tender followed by reverse auction). While a pre-bid meeting has been scheduled for May 18, the last date for bids is June 4, 2021.

MSEDCL shall enter into Power Purchase Agreement (PPA) with the Bidders selected based on this RfS for purchase of solar power for a period of 25 years from the Scheduled Commercial Operation Date in case of proposed/new solar power projects or for a period of 25 years from the date of execution of PPA for existing solar power projects based on the terms, conditions and provisions of the RfS.

The Solar Power Generator shall be responsible for design, finance, procurement of land, engineering, procurement, construction, operation and maintenance of the Project under and in accordance with the provisions of the PPA to be entered into between the Solar Power Generator and MSEDCL.

The bidders selected by MSEDCL based on this RfS, shall be existing solar power project or shall set up Solar Power Projects in accordance with the provisions of this RfS document and Power Purchase Agreement (PPA). PPA format has been enclosed and can be downloaded from htttps://www.bharat-electronictender.com.

MSEDCL shall enter into Power Purchase Agreement (PPA) with the Bidders selected based on this RfS for purchase of solar power for a period of 25 years from the Scheduled Commercial Operation Date in case of proposed/new solar power projects or for a period of 25 years from the date of execution of PPA for existing solar power projects based on the terms, conditions and provisions of the RfS. The tariff payable to Selected Bidder shall be fixed for 25 years as discovered through the e-bidding and ereverse auction conducted vide this RfS.

The bidders will be free to avail fiscal incentives like Accelerated Depreciation, Concessional Customs and Excise Duties, Tax Holidays, benefits from trading of carbon credits, etc. as available for such projects. The same will not have any bearing on comparison of bids for selection. As equal opportunity is being provided to all bidders at the time of tendering itself, it is up to the bidders to avail various tax and other benefits.

In case of import of energy during a month for Intra-State projects, the successful bidder shall be required to make payment to MSEDCL at the prevailing tariff for the particular category which is applicable to Solar Power Projects as determined by MERC from time to time. At present the applicable tariff is HT Industry Tariff.

The Projects to be selected for aggregate capacity of 500 MW to be set up in any State in India, provide for deployment of Solar PV Technology. However, the selection of projects would be technology agnostic within the technology mentioned hereinafter.

Crystalline silicon or thin film etc., with or without trackers can be installed. Only commercially established and operational technologies can be used, to minimize the technology risk and to achieve the timely commissioning of the Projects.

Projects under construction, projects which are not yet commissioned and projects already commissioned but do not have any long-term PPA with any agency and selling power on short-term or merchant plant basis will, however, be considered, in case these projects are not already accepted under any other Central or State Schemes and do not have any obligations towards existing buyers.

With an EMD of Rs 4 lacs per MW , and processing fees of Rs 3 lacs, MSEDCL has clearly moved to limit participation to  larger developers possibly.